meat & livestock australia annual operating plan 2015-16 · 2016. 7. 13. · 4 introduction...

Meat & Livestock Australia Annual Operating Plan 2015-16

2

Content

Introduction ............................................................................................................................................ 4

1. Trade and market access ................................................................................................................... 8

1.1 Develop and deliver industry systems that underpin product integrity ................................................................... 8

1.2 Support industry and government to maintain and liberalise world meat markets ............................................... 10

1.3 Maximise market options for producers and exporters in the livestock export market......................................... 12

2. Increasing customer and consumer demand for red meat............................................................ 14

2.1 Develop and deliver market and consumer insights for better decisions ............................................................. 14

2.2 Aggressive promotion of beef across global markets ........................................................................................... 16

2.3 Aggressive promotion of sheepmeat and goatmeat across global markets ......................................................... 20

3. Improving productivity and profitability across the supply chain ................................................ 23

3.1 Identify and deliver innovative opportunities to increase on-farm productivity and profitability through genetic and management interventions ............................................................................................................................ 23

3.2 Identify information platforms and technologies that drive productivity and innovation throughout supply chains .............................................................................................................................................................................. 25

4. Industry sustainability and integrity ............................................................................................... 27

4.1 Sustainable supply chain resource management ................................................................................................. 27

4.2 Animal welfare, biosecurity and animal well-being without reducing productivity levels ...................................... 30

4.3 Support industry’s effective engagement with the community ............................................................................. 32

5. Industry leadership, innovation adoption and capability .............................................................. 34

5.1 Platforms for supporting skill development and innovation adoption by producers ............................................. 34

5.2 Build industry value chain innovation capability ................................................................................................... 36

5.3 Industry leadership and issues research .............................................................................................................. 38

6. Stakeholder engagement and communication ............................................................................... 40

Corporate services ............................................................................................................................... 42

AUS-MEAT ............................................................................................................................................ 44

MLA Donor Company ........................................................................................................................... 45

Appendix A – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian

Government’s Science and Research Priorities ................................................................................ 47

Appendix B – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian

Government’s Rural R&D Priorities .................................................................................................... 48

Appendix C – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian

Government’s Agricultural Competiveness White Paper Priorities .................................................. 49

Appendix D: Funding sources of strategic imperatives .................................................................... 50

Appendix E: MLA income and expenditure by funding source 2015-16 ........................................... 52

MLA acknowledges the matching funds provided by the Australian Government to

support the research and development detailed in this report

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Acronyms

MLA business units Central Marketing and Industry Insights……………………………………….................. CMII Communications and Stakeholder Engagement…………............................................. CSE Corporate Services…………………………………………………………………………... CS Red Meat Innovation……………………………………...…………………………………. RMI International Markets……………………………………………........................................ IM Livestock Productivity……………………………………………....................................... LP On-farm Innovation and Adoption…………………………….......................................... OIA Value Chain Innovation…………………………………………........................................ VCI Other acronyms Annual Operating Plan………..……………………………….......................................... AOP Australian Meat Industry Council……………………………........................................... AMIC Australian Meat Processor Corporation………………………........................................ AMPC Australian Pesticides and Veterinary Medicines Authority…........................................ APVMA Collaborative Innovation Strategies program…………………....................................... CISp Cooperative Research Centre…………………………………........................................ CRC Department of Agriculture and Food Western Australia……........................................ DAFWA Exporter Supply Chain Assurance System………………….......................................... ESCAS Free Trade Agreement…………………………………………........................................ FTA General practitioners……………………………………………........................................ GPs Going into Goats…………………………………………………....................................... GIG Gulf Cooperation Council………………………………………........................................ GCC Intellectual property…………………………………………….......................................... IP Intercollegiate Meat Judging …………………………………......................................... ICMJ International Organization for Standardization………………........................................ ISO Intramuscular fat…………………………………………………....................................... IMF Key performance indicator……………………………………......................................... KPI Livestock Data Link……………………………………………......................................... LDL Livestock Export Program………………………………………....................................... LEP Livestock Production Assurance………………………………....................................... LPA Marketing dollars……………………………………………….......................................... M Meat & Livestock Australia……………………………………......................................... MLA Meat Standards Australia………………………………………........................................ MSA MLA Donor Company………………………………………….......................................... MDC National Livestock Identification System…………………….......................................... NLIS National Livestock Reporting Service…………………………....................................... NLRS National Vendor Declaration……………………………………....................................... NVD Natural resource management…………………………………....................................... NRM Occupational health and safety………………………………......................................... OH&S Phosphorus………………………………………………………........................................ P Research and development……………………………………........................................ R&D Research, development and adoption ………………………......................................... RD&A Research, development and extension………………………......................................... RD&E Research and Development Corporation……………………......................................... RDC Research dollars…………………………………………………....................................... R World Trade Organization………………………………………....................................... WTO

Important note: all figures expressed in this AOP are in $’000. Numbers may not add up due to rounding.

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Introduction

This Annual Operating Plan (AOP) outlines MLA’s planned work program in 2015-16. It contains the strategic imperatives which are the themes that guide MLA’s annual work program. It also includes the objectives and the strategies, key initiatives and budgets to achieve those objectives. The AOP aims to guide MLA and inform levy payers, peak industry councils, the Australian Government and the wider industry about MLA’s planned activities. Strategic direction MLA doesn’t spend levies and make decisions in isolation. This is done in concert with producers, the government, peak industry councils and other industry organisations. MLA considers 2015-16 to be a transitional year given the release of the Meat Industry Strategic Plan (MISP) 2020 in September 2015, after this AOP had been finalised. As this document was unavailable during planning for the 2015-16 AOP, MLA has taken its strategic direction this year from the Australian Government’s Science and Research Priorities (see Appendix A) and the Rural Research Priorities (see Appendix B), the MISP 2010-2015 and the MLA Corporate plan 2010-15 (see Figure 1). The Australian Government has developed clear, farmer-orientated priorities to target rural RD&E funding in its Agricultural Competitiveness White Paper, released in July 2015. MLA’s objectives in this AOP align to these priorities (see Appendix C).

Figure 1: MLA’s strategic and operational planning process in 2015-16

For the four years following this plan, MLA will take its strategic direction from the MISP 2020 and the MLA Corporate Plan 2015-2020 (currently in draft), as well as the Australian Government’s priorities.

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Strategic imperatives MLA’s strategic imperatives in 2015-16 are: 1. Trade and market access 2. Increasing customer and consumer demand for red meat 3. Improving productivity and profitability across the supply chain 4. Industry sustainability and integrity 5. Industry leadership, innovation adoption and capability 6. Stakeholder engagement and communication

Corporate services

AUS-MEAT Budget overview In 2015-16 MLA plans to invest $199 million in research, development and marketing activities across the six strategic imperatives, the MLA Donor Company (which doesn’t use producer levies), corporate services, levy collection and AUS-MEAT (Figure 2). Figure 2: MLA strategic imperatives – 2015-16 budget

Funding sources MLA’s $199 million investment is funded by producer levies, the Australian Government and external sources including from processors, LiveCorp and voluntary contributions (Figure 3).

Figure 3: Projected 2015-16 investment, by funding source

The funding sources of each strategic imperative are shown in Appendix D.

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Alignment with Australian Government priorities Figures 4-6 show the alignment of MLA’s $107 million research and development budget (which includes Australian Government matching funding and MDC investments) across the Australian Government’s research priorities. This alignment is further detailed in appendices A-C. Figure 4: MLA’s research and development 2015-16 budget across the Australian Government’s Science and Research Priorities

Figure 5: MLA’s research and development 2015-16 budget across the Australian Government’s Rural R&D Priorities

$2.6 m2.4%

$94.4 m87.7%

$3.8 m3.5%

$2.9 m2.7%

$3.9 m3.6%

Food

Env ironmental Change

Transport

Soil and Water

Resources

$6.1 m5.7%

$2.5 m2.3%

$3.6 m3.3%

$36.5 m33.9%

$45.9 m42.7%

$13 m12.1%

Climate Variability and Climate Change

Productiv ity and Adding Value

Supply Chain and Markets

Supporting the Rural Research and

Dev elopment Priorities

Biosecurity

Natural Resource Management

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Figure 6: MLA’s research and development 2015-16 budget across the Australian Government’s Agricultural Competitiveness White Paper Priorities

Structure

The remainder of the AOP is structured as follows:

Strategic imperatives: level one eg. 1. Trade and market access

Objectives: level two eg. 1.1 Develop and deliver industry systems that underpin product integrity

Strategies: level three eg. 1.1.1 Conduct scientific research to ensure food safety systems are at the leading

edge of knowledge and practice

Key initiatives: level four eg. 1.1.1.1 Access and maintain the safety and integrity of product in the marketplace.

$28.4 m26.4%

$66.8 m62.0% $6.4 m

5.9%

$6.1 m5.7%

Biosecurity

Adv anced Technology

Adoption of Research and Dev elopment

Soil, Water and Managing Natural

Resources

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1. Trade and market access

1.1 Develop and deliver industry systems that underpin product integrity

For many years, Australia has enjoyed unparalleled access to world meat markets due to its favourable disease status and world class food safety and integrity systems. Continued work is required in these areas to ensure ongoing leadership through both R&D and industry integrity system activities to keep Australia at the forefront of developments and investments in maintaining existing systems. In the area of food safety and integrity, MLA will continue to invest in the maintenance of the NLIS database and LPA systems; develop tools and systems for managing food safety based on innovative science; and develop capabilities, processes and systems that facilitate the electronic transfer of food safety information throughout the supply chain.

This objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Satisfaction rating of MLA’s food safety activities by industry (processors and AMIC) rated at more than 85 per cent (related to strategy 1.1.1)

Develop a comprehensive information resource on shelf-life (related to strategy 1.1.1)

NLIS Database Refresh project completed (related to strategy 1.1.2)

eDEC tool replaced by a simple-to-use interim solution by September 2015 (related to strategy 1.1.3)

Implement eNVD data standards for business-to-business use (related to strategy 1.1.3)

A whole-of-industry eNVD strategy has been endorsed and enabling tools supporting this strategy are built (related to strategy 1.1.3)

Development of an online assessment and registration tool for LPA by December 2015 (related to strategy 1.1.3)

Achieve recognition of industry assurance programs meeting national standards for food safety, traceability, biosecurity and animal welfare by June 2016

Strategy Key initiatives Business unit

2014-15 budget

2015-16 budget

1. Conduct scientific research to ensure food safety systems are at the leading edge of knowledge and practice

1. Assess and maintain the safety and integrity of product in the marketplace

VCI 1,368 1,242

2. Develop and implement new techniques and systems for delivering safe and wholesome product

VCI 572 698

3. Develop risk-based post mortem inspection systems for animal health surveillance, and risk-based systems for the assessment of product safety and suitability

VCI 340 340

2. Develop and implement appropriate meat and livestock traceability systems

1. Ensure that NLIS Ltd has the capability to deliver database and support services to enable industry to meet the national traceability standards

VCI 5,766 5,827

3. Support the development and uptake of food safety and quality assurance systems by all sectors of the red meat supply chain

1. Deliver programs that underpin the integrity of the Australian red meat and livestock industry, including enhancing and supporting the LPA and NVD programs.

VCI 1,330 2,550

2. Provide secretariat services to SAFEMEAT and develop effective industry safety/issues management strategies

VCI 480 465

9. AMPC-managed initiatives

1. AMPC-funded and managed initiatives in alignment with strategic direction outlined on this page

AMPC 1,028 1,325

10,884 12,447

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Budget 2015-16

1.1.1 1.1.2 1.1.3 1.1.9 Grand Total

- Goat R - - 30 - 30

- Goat M - 28 70 - 99

- Mutton R 14 33 11 - 59

- Mutton M - 75 24 - 99

- Lamb R 194 27 217 - 438

- Lamb M - 1,148 565 - 1,712

- Grassfed Cattle R 318 329 181 - 828

- Grassfed Cattle M - 1,894 469 - 2,363

- Grainfed Cattle R 56 - 69 - 125

- Grainfed Cattle M - 755 167 - 922

- Processor R 558 500 123 663 1,843

- Processor M - 150 384 - 534

- Livestock Export R - - 16 - 16

- Livestock Export M - - 17 - 17

- Gov R 1,140 889 646 662 3,338

- External M - - 25 - 25

Sum of R 2,280 1,778 1,293 1,325 6,676

Sum of M - 4,049 1,722 - 5,771

Sum of AOP 15/16 2,280 5,828 3,015 1,325 12,447

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1.2 Support industry and government to maintain and liberalise world meat markets

Australia’s red meat exports face access restrictions in many overseas markets. Global trade liberalisation and improvements in technical market access conditions are a key focus of industry efforts to create opportunities for growth, development and diversification. Industry invests in research, consultation, assisting diplomatic activities and advocacy in pursuit of the commercial and economic gains from removing or reducing impediments to trade.

In 2015-16, MLA will collaborate with government and industry stakeholders to assist in the defence of existing favourable access conditions and in seeking to secure access improvements. Priorities include progressing industry positions under the India-Australia, Indonesia-Australia, GCC-Australia, Trans Pacific Partnership and Regional Comprehensive Economic Partnership trade negotiations; strategic advocacy in support of timely implementation of the recently concluded China-Australia FTA; advocacy in support of initiating FTA negotiations with the EU; implementing measures to assist in alleviating access impediments in Indonesia and China; and an ongoing effort (in conjunction with industry and government) directed towards tackling the plethora of technical trade barriers imposed by a number of Australia’s trading partners. This objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Submissions prepared by MLA on market access barriers are endorsed by industry/peak councils

The Australian Government has clarity on industry access issues and values MLA’s input

Demonstrable progress is made on implementing the Indonesia, China and EU market access and engagement strategies (related to strategy 1.2.4)

Strategy Key initiatives Business

unit 2014-15 budget

2015-16 budget

1. Support industry and government to maintain and defend existing favourable market access conditions in overseas markets

1. Monitor developments in overseas markets; develop and utilise networks of industry and government contacts in Australia and overseas to ensure favourable access is not eroded; and respond when impediments arise

IM 3,112 2,780

2. Assist in positioning the Australian red meat and livestock industry for the WTO Doha round

1. Monitor and respond to WTO developments; reinforce industry priorities; build coalitions in key overseas markets

IM 51 52

3. Assist in positioning the Australian red meat and livestock industry for FTA negotiations

1. Advance industry priorities in bilateral and regional FTA negotiations and initiate advocacy efforts in support of existing and sought FTAs

IM 984 748

4. Develop strategies to remove access barriers

1. Undertake research to support trade reform advocacy in WTO and FTA negotiations and in assisting the alleviation of technical trade barriers

IM 760 450

2. In conjunction with the AMPC Trade Director, assist with developing and implementing technical barrier alleviation action plans (specifically in the Middle East and China)

IM 0 150


1. AMPC-funded and managed initiatives in alignment with strategic direction outlined on this page

AMPC 0 910

4,907 5,090

11

Budget 2015-16

1.2.1 1.2.2 1.2.3 1.2.4 1.2.9 Grand Total

- Goat R - - - - - -

- Goat M - - 2 - - 2

- Mutton R - - - 2 - 2

- Mutton M 74 1 9 - - 84

- Lamb R - - - 17 - 17

- Lamb M 550 7 166 30 - 752

- Grassfed Cattle R - - - 33 - 33

- Grassfed Cattle M 688 16 165 30 - 898

- Grainfed Cattle R - - - 5 - 5

- Grainfed Cattle M 94 2 34 10 - 140

- Processor R - - - 113 455 113

- Processor M 1,355 26 373 80 - 1,834

- Livestock Export R - - - - - -

- Livestock Export M - - - - - -

- Gov R - - - 170 455 170

- External M 20 - - 111 - 131

Sum of R - - - 339 - 339

Sum of M 2,780 52 748 261 - 3,841

Sum of AOP 15/16 2,780 52 748 600 910 5,090

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1.3 Maximise market options for producers and exporters in the livestock export market

Australia’s livestock export industry employs thousands of Australians and contributes significantly to the national economy. Operated by MLA in partnership with LiveCorp, the Livestock Export Program (LEP) assists Australian livestock exporters and supply chains to meet regulatory requirements, improve performance and address market access issues. In 2015-16, a major goal of the LEP is to research, develop and pilot a Livestock Global Assurance Program (LGAP) for industry. Strong support will also be provided to exporters and importers via training, technical support and market access initiatives. Effort will be directed to building and strengthening relationships with key stakeholders in-market. New and emerging markets will be strategically supported. This key objective aims to deliver the following outcomes which, unless otherwise specified, are related to all the strategies in the table below:

LEP meets 85 per cent of exporter/importer requests for gap analysis, risk analysis, training and technical advice (related to strategy 1.3.1)

For each of the supply chain efficiency key initiatives, deliver four programs to support improvements in supply chain efficiency and performance (related to strategy 1.3.2)

Peak councils rate LEP advice on live export issues as valuable (3/5), measured by stakeholder survey

Peak councils and government rate LEP advice and management of market access issues as valuable (3/5), measured by stakeholder survey (related to strategy 1.3.4)


2014-15 budget

2015-16 budget

1. Assist supply chains to deliver continuous improvement in animal health and welfare

1. Conduct R&D to develop innovations that will assist supply chains improve animal health and welfare

OIA

1,700 2,220

2. Support industry to review supply chains and implement ESCAS in Indonesia

IM

1,197

823

3. Support industry to review supply chains and implement ESCAS in other Asian markets

IM

968 1,574

4. Support industry to review supply chains and implement ESCAS in Middle East markets

IM

1,164 1,175

2. Provide research and support to enable improvements in supply chain efficiency and performance

1. Deliver industry capability programs to support improvements in efficiencies through the supply chain

IM

134 134

2. Conduct R&D to develop tools and better methods for improved livestock performance through the supply chain

OIA

500 500

3. Deliver programs in Indonesia aimed at improving livestock performance

IM

125 125

4. Deliver programs in other Asian markets aimed at improving livestock performance

IM

117 215

5. Deliver programs in Middle East markets aimed at improving livestock performance

IM

68 68

3. Provide communications support for the Industry Reform Strategy

1. Provide valued information and deliver communication based support services that collectively build industry’s capacity to promote and defend the trade

IM

320 305

2. Deliver targeted communications support activities to industry through a dedicated live export communications position

IM

241 242

4. Assist industry and 1. Conduct R&D that assists and supports IM 200 200

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2014-15 budget

2015-16 budget

government to defend and improve market access conditions and build demand for livestock

improved market access conditions

2. Assist in the defence of existing market access conditions in Indonesia

IM

230 202

3. Assist in the defence of existing market access conditions in other Asian markets and support the development of new markets

IM

113 135

4. Assist in the defence of existing market access conditions in Middle East markets and support the development of new markets

IM

290 277

7,367 8,195

Budget 2015-16

1.3.1 1.3.2 1.3.3 1.3.4 Grand Total

- Goat R 25 - - - 25

- Goat M 34 - - - 34

- Mutton R 65 20 - 15 100

- Mutton M 250 40 70 80 440

- Lamb R 65 45 - 15 125

- Lamb M 290 40 78 80 488

- Grassfed Cattle R 245 60 - 10 315

- Grassfed Cattle M 2,093 297 129 289 2,808

- Grainfed Cattle R - - - - -

- Grainfed Cattle M - - - - -

- Processor R - - - - -

- Processor M - - - - -

- Livestock Export R 710 125 - 60 895

- Livestock Export M 905 165 270 165 1,505

- Gov R 1,110 250 - 100 1,460

- External M - - - - -

Sum of R 2,220 500 - 200 2,920

Sum of M 3,572 542 547 614 5,275

Sum of AOP 15/16 5,792 1,042 547 814 8,195

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2. Increasing customer and consumer demand for red meat

2.1 Develop and deliver market and consumer insights for better decisions

Assisting producers and their supply chain partners to engage effectively with new higher value markets is critical to the sustained growth of the red meat and livestock sector. MLA will develop and deliver market and consumer insights during 2015-16 that will help red meat producers and other stakeholders along the value chain make informed business management decisions. MLA will do this by ensuring information gaps are identified, collected, analysed and communicated in a timely, user-friendly and readily assessable manner. In addition, new innovation insights are required to identify growth opportunities in emerging markets and market segments. This program will develop new knowledge and market insights that will inform more strategic innovation investment decisions (at both industry and value chain levels) and ultimately lead to increased value creation and capture along the value chain. Innovation insights will build on a range of market, consumer, customer, competitor and in-country value chain analyses and will ensure that industry is well positioned to respond to high value opportunities as they emerge in the future.

This key objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Over 90 per cent of stakeholders who utilise MLA market and industry insights information believe it is valuable and contributes towards their business decision making process

Maintain NLRS ISO accreditation by reporting over 80 per cent of livestock market sales (related to strategy 2.1.1)

Establish innovation insights strategies to identify and evaluate new innovation opportunities that will underpin growth in at least three key markets and market segments (related to strategy 2.1.4)

Design and deliver at least three industry workshops and/or communication materials that build industry’s capabilities and awareness of emerging trends and opportunities for new growth opportunities in emerging markets and market segments (related to strategy 2.1.4)


2014-15 budget

2015-16 budget

1. Collect and disseminate livestock market data and analyses that help producers make informed business decisions

1. Operate a National Livestock Reporting Service in accordance with its ISO Quality Management System

CMII 2,200 2,500

2. Conduct surveys on each segment of the supply chain

CMII 669 750

3. Conduct incisive analysis and disseminate market news reports, industry projections and market overviews

CMII

0 680

2. Collect and disseminate international market data and conduct incisive analyses of relevant world meat market developments

1. Collect and maintain a database of domestic and global meat market data

CMII 780 780

2. Conduct incisive analysis and disseminate market insight reports

CMII 1,358

680

3. Develop consumer and customer insights for decision making and KPI tracking

1. Conduct global research and monitor, analyse and report on trade, customer and consumer trends

CMII & IM

2,184 550

2. Conduct consumer research to develop and measure domestic marketing strategies

CMII 0 1,214

4. Develop value chain innovation insights

1. Deliver innovation knowledge services of emerging trends and opportunities that support design led research to develop future growth and inform future investment decisions.

VCI 500 R MDC

350 R MDC

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2014-15 budget

2015-16 budget

2. Deliver innovation knowledge services which raise industry awareness of emerging trends and opportunities for new products, packaging and value chain business model innovations and support more informed innovation decision making for producers and their value chain partners (including the Rural Research and Development for Profit Insights programme).

VCI 100 R 1,475

7,791 8,979

Budget 2015-16

2.1.1 2.1.2 2.1.3 2.1.4 Grand Total

- Goat R - 12 - 1 13

- Goat M - - 5 - 5

- Mutton R 33 8 - 6 48

- Mutton M - - - - -

- Lamb R 263 94 - 46 402

- Lamb M 295 - 340 - 635

- Grassfed Cattle R 746 290 - 87 1,122

- Grassfed Cattle M 800 - 722 - 1,522

- Grainfed Cattle R 80 27 - 11 118

- Grainfed Cattle M - - 108 - 108

- Processor R - 300 295 150 745


- Livestock Export R - - - - -

- Livestock Export M - - - - -

- Gov R 1,123 730 295 300 2,448

- External M 589 - - 1,225 1,814

Sum of R 2,246 1,460 590 600 4,896

Sum of M 1,684 - 1,174 1,225 4,083

Sum of AOP 15/16 3,930 1,460 1,764 1,825 8,979

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2.2 Aggressive promotion of beef across global markets

In the domestic market, MLA anticipates increased prices due to supply shortages. Given this dynamic and the continued growth in consumer health awareness, it is necessary to give consumers a reason to pay more for their beef. The “You’re Better on Beef” positioning encapsulates that beef is the most nutrient rich of popular proteins and as such, plays a crucial role in fueling healthy lifestyles of Australians. This program will be supported by seasonal mass marketing campaigns and trade marketing initiatives. Investment in nutrition research and health care professional marketing programs aims to ensure that key influencers continue to recommend red meat three to four times per week as part of a healthy diet. In international markets, in accordance with the five year global marketing strategy, focus will continue to increase towards the “growth” and “develop” beef markets of China, North America, Middle East/North Africa, Indonesia, and South-East Asia, while Korea and Japan remain “maintain” markets and EU/Russia are “managed strategically”. MLA’s International Markets structure will provide efficiencies and focus to implement both business development programs and ‘brand Australia’ building programs globally, including investment in further developing the interntationally consistent “True Aussie” platform. To support consumers’ preference for consistent eating quality in beef, focus will continue on ensuring adoption and recognition of the MSA beef grading system through the supply chain. Further innovation focus and delivery will continue to develop from purely a product value add focus to new business solutions and models. The Value Chain Innovation program will provide impetus and capability for this to occur. This key objective aims to deliver the following key outcomes; the strategy which relates to each is also denoted:

Domestic market

Maintain beef’s value share at 36 per cent or higher of all fresh meat; and penetration in the last four weeks (preceding the survey) at 69 per cent or higher (related to strategy 2.2.1)

Improve key beef attributes that drive consumer purchase propensity as measured by consumer tracking (related to strategy 2.2.1)

Strong trade/end user support for, and uptake of, MLA beef marketing programs (related to strategy 2.2.1)

International markets

International business plans are endorsed by industry and at least 80 per cent of KPIs listed are achieved (related to strategy 2.2.4)

Business development programs deliver supply chain opportunities and create strong trade and customer links

Over 80 per cent of Australian exporters are satisfied with MLA delivery of key events (trade shows, missions, etc)

Over 75 per cent of importers and trade are satisfied with MLA information and in-market activities (related to strategy 2.2.4)

True Aussie brand building activities differentiate Australian beef and increase customer loyalty and preference

Increased consumer levels of unprompted awareness in key surveyed markets

Increase in True Aussie logo presence at retail and foodservice across key markets (related to strategy 2.2.4)

These core initiatives will be implemented in differing degrees across markets according to whether a market/segment is considered ‘developing’, ‘growth’, ‘developed’ or ‘strategically managed’

Value adding innovations

Develop novel value adding options through packaging and product/process innovation that enhances demand

for beef in global markets (related to strategy 2.2.5)

Work with supply chain partners and end customers to develop at least one new beef product opportunity that

encompasses demand-driven technologies that transform and value-add low value cuts, with the potential to

add at least $5/head in net value and grow demand for producers (related to strategy 2.2.5)

17

Design and deliver at least two industry workshops and/or communications materials that improve beef industry

capabilities and awareness to adopt and prosper from new products and value adding innovations (related to

strategy 2.2.5)

Lead and deliver objectives in the cross-sectoral Rural Research and Development for Profit Insights

programme (related to strategy 2.2.5)

MSA

100 per cent of MSA licensed processors implement the MSA Model V1.8 (MSA Model 2014) (related to strategy 2.2.8)

Improvement of national eating quality measured by the MSA Index (related to strategy 2.2.8)


2014-15 budget

2015-16 budget

1. Strengthen customer loyalty and commitment for beef in the domestic market

1. Brand development – deliver impactful brand campaigns that reinforce Australians’ emotional bond with beef

CMII 5,823 6,185

2. Consumer nutrition – help consumers prepare healthy meal solutions, reducing the number of households limiting consumption of beef for health reasons

CMII 2,926 2,220

3. Business development – leverage consumer demand building programs into foodservice, retail and wholesale customers and support channels with promotional activities to enhance knowledge of beef with the aim of increasing menu penetration

CMII 2,809 1,628

4. Develop and deliver consumer collateral supporting the MSA grading program which clearly delivers a message of beef eating quality to the end user

CMII 786 651

2. Build evidence supporting health benefits and maintain fact-based recommendations

1. Invest in research and credible publications on the health benefits of red meat, including beef

CMII 590 534

2. Develop strategic partnerships and collaborations with key influencer organisations

CMII 78 90

3. Communicate and promote evidence based nutrition information on red meat to key influencers

1. Develop and implement a content marketing strategy targeting GPs

CMII 280 104

2. Develop and promote the red meat nutrition website

CMII 0 104

3. Hold annual symposium and conferences targeting dietitians and other professionals

CMII 542 90

4. Build the True Aussie brand to differentiate and add value to Australian beef in export markets

1. Business development – increase penetration of Australian beef by building a network of stakeholders and supporting business partners

IM 4,013 5,842

2. Brand building – increase the demand for, and value of, Australian beef by communicating the True Aussie point of difference and supporting business partners to optimise brand opportunities

IM 10,784 11,704

3. Meat safety – communicate the integrity of Australian red meat products internationally

IM 2,688 2,232

18


2014-15 budget

2015-16 budget

5. Develop novel value adding options through packaging and product innovation that enhances demand for beef in global markets

1. Develop innovative new products, packaging and processes for beef that support growth in high value markets and market segments

VCI 574 R MDC

400 R MDC

2. Build beef industry capability to adopt new products, packaging and value adding concepts that lead to growth in high value markets and market segments

VCI 146 R MDC

130 R MDC

3. Develop innovative technologies and processes to add value to beef co-products

VCI MDC MDC

6. Support brand owners in developing their brands to better differentiate them in global markets

1. Support the CoMarketing Program to build industry marketing capability, improve customer loyalty towards Australian beef brands, and ultimately deliver value across the supply chain to producers

CMII 4,179 2,635

7. Ensure sufficient integrity programs are implemented to build confidence in the MSA program

1. Maintain program standards and review for relevance in line with the introduction of technologies that predict components of MSA grading. Continue to review and refine pathways that underpin eating quality performance

LP 250 162

2. Ensure the protection of MSA IP and the integrity of all eating quality trademarks is maintained globally through effective licensing, audit and surveillance systems

LP 480 438

8. Support adoption and recognition of the MSA beef grading system through the supply chain

1. Increase the adoption of the MSA system to improve eating quality consistency and build value across the supply chain

LP 2,403 950

2. Improve compliance to the MSA requirements for beef grading through producer education and a greater understanding of the MSA beef grading model

LP 0 950

39,351 37,049

19

Budget 2015-16

2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 Grand Total

- Goat R - - - - - - - - -

- Goat M - - - - - - - - -

- Mutton R - - - - - - - - -

- Mutton M - - - - - - - - -

- Lamb R - - - - - - - - -

- Lamb M - - - - - - - - -

- Grassfed Cattle R - 94 36 - 108 - 83 237 558

- Grassfed Cattle M 8,402 18 36 16,660 - 1,685 167 951 27,918

- Grainfed Cattle R - 17 17 - 25 - 26 79 164

- Grainfed Cattle M 792 27 10 1,572 - 950 52 316 3,719

- Processor R - 156 52 - 133 - - - 340

- Processor M 1,415 45 45 1,086 - - - - 2,591

- Livestock Export R - - - - - - - - -

- Livestock Export M - - - - - - - - -

- Gov R - 267 104 - 265 - 110 316 1,062

- External M 75 - - 460 - - 162 - 697

Sum of R - 534 209 - 530 - 219 633 2,124

Sum of M 10,684 89 90 19,778 - 2,635 381 1,267 34,925

Sum of AOP 15/16 10,684 623 299 19,778 530 2,635 600 1,900 37,049

20


2.3 Aggressive promotion of sheepmeat and goatmeat across global markets

Global demand for Australian sheepmeat continues to grow with export volumes now exceeding domestic utilisation. However, Australia remains the most important single market and the focus in 2015-16 will be to consolidate the strong position lamb holds in this market. The timing of the three lamb campaigns will remain unchanged in 2015-16: autumn (roasts), spring and Australia Day. The consumer communication platform of ‘You never lamb alone’ (established in 2014-15) will continue in the domestic market in 2015-16. Reminding consumers why they love lamb is a key pillar in supporting the price premium lamb enjoys over other proteins. An additional pillar is ‘continued eating quality development’ and in 2015-16, MLA will continue to invest in ensuring lamb eating quality is adopted and supported across the lamb supply chain. In international markets, in accordance with the five year global marketing strategy, focus will continue to increase towards the “growth” sheepmeat markets of North America, Middle East/North Africa, China and Japan, while fostering developing markets in South East Asia. MLA will “manage strategically” markets in the EU/Russia. MLA’s International Markets structure will provide efficiencies and focus to implement both business development programs and ‘brand Australia’ building programs globally, including investment in further developing the internationally consistent “True Aussie” platform. MLA will also continue to partner with research and technology providers and industry partners to identify and adopt novel science and technology platforms that add value to grow smallstock demand. The Value Chain Innovation program will provide impetus and capability for this to occur. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

Domestic market

Maintain lamb’s market share of fresh meat at retail at 13.5 per cent (related to strategy 2.3.1)

Improvement in key lamb attributes as measured by consumer tracking: “top of mind awareness” and “is loved

by Australians” (related to strategy 2.3.1)

International markets

International business plans are endorsed by industry and at least 80 per cent of KPIs listed are achieved (related to strategy 2.3.4)

Business development programs deliver supply chain opportunities and create strong trade and customer links

Over 80 per cent of Australian exporters are satisfied with MLA delivery of key events (trade shows, missions, etc)

Over 75 per cent of importers and trade are satisfied with MLA information and in-market activities (related to strategy 2.3.4)

True Aussie brand building activities differentiate Australian sheepmeat and goatmeat and increase customer loyalty and preference

Increased consumer levels of unprompted awareness in key surveyed markets

Increase in True Aussie logo presence at retail and foodservice across key markets (related to strategy 2.3.4)

These core initiatives will be implemented in differing degrees across markets according to whether a market/segment is considered ‘developing’, ‘growth’, ‘developed’ or ‘strategically managed’

Value adding innovations

Work with supply chain partners and end customers to develop at least one new smallstock product opportunity that encompasses demand-driven technologies that transform and value-add low value cuts, with the potential to add at least $1/head in net value and grow demand for producers (related to strategy 2.3.5)

Design and deliver at least one industry workshop and/or communications resource that improves industry capabilities and awareness to adopt and prosper from new products and value adding innovations (related to strategy 2.3.5)

MSA

Two supply chains trialling MSA cuts based sheepmeat (related to strategy 2.3.8)

21

MSA Index implemented for sheep (related to strategy 2.3.8)


2014-15 budget

2015-16 budget

1. Strengthen consumer loyalty and customer commitment for sheepmeat in the domestic market

1. Brand development – deliver marketing campaigns effective at reinforcing the lamb brand position within the marketplace to entrench lamb as Australians’ national meat

CMII 6,507 6,113

2. Consumer nutrition – help consumers prepare healthy meal solutions, reducing the number of households limiting consumption of lamb for health reasons

CMII 0 835

3. Business development – leverage consumer demand building programs into foodservice, retail and wholesale customers and support channels with promotional activities to enhance knowledge of lamb with the aim of increasing menu penetration

CMII 1,525 908

4. Develop and deliver consumer collateral supporting the MSA grading program which clearly delivers a message of lamb eating quality to the end user

CMII 0 175

2. Build evidence supporting health benefits and maintain fact-based recommendations

1. Invest in research and credible publications on the health benefits of red meat, including lamb

CMII 300 534

2. Develop strategic partnerships and collaborations with key influencer organisations

CMII 1,079 89

3. Communicate and promote evidence based nutrition information on red meat to key influencers

1. Develop and implement a content marketing strategy targeting GPs

CMII 79 105

2. Develop and promote the red meat nutrition website

CMII 0 105

3. Hold an annual symposium targeting dieticians CMII 85 91

4. Build the True Aussie brand to differentiate and add value to Australian sheepmeat in export markets

1. Business development – increase the penetration of Australian lamb by building a network of stakeholders and supporting business partners

IM 1,626 3,711

2. Brand building – increasing the demand for, and value of, Australian lamb by communicating the True Aussie point of difference and supporting business partners to optimise brand opportunities

IM 1,425 3,289

3. Meat safety – communicate the integrity of Australian red meat products internationally

IM 446

905

5. Develop novel value adding options through packaging and product innovation that enhances demand for sheepmeat and goatmeat in global markets

1. Develop innovative new products, packaging and processes for sheepmeat and goatmeat that support growth in high value markets and market segments

VCI 162 R MDC

314 R MDC

2. Build sheep and goat industry capability to adopt new products, packaging and value adding concepts that lead to growth in high value markets and market segments

VCI 32 R MDC

70 R MDC

3. Develop innovative technologies and processes to add value to sheep and goat co-products

VCI MDC MDC

6. Support brand owners in developing their brands and products that better differentiate them in global markets

1. Support the CoMarketing Program to build industry marketing capability, improve customer loyalty towards Australian lamb brands, and ultimately deliver value across the supply chain to producers

CMII 3,575 550

22


2014-15 budget

2015-16 budget

7. Ensure sufficient integrity programs are implemented to build confidence in the MSA program

1. Maintain program standards and review for relevance in line with the introduction of new grading tools and pathways

LP 0 68

2. Ensure the protection of MSA IP and the integrity of all eating quality trademarks is maintained globally through effective licensing, audit and surveillance systems

LP 120 162

8. Support adoption

and recognition of

the MSA sheep

grading system

through the supply

chain

1. Increase the adoption of the MSA system to improve eating quality consistency and build value across the supply chain. Trial the implementation of an MSA Index for sheepmeat

LP 497 500

2. Provide operational assistance to processors to support the implementation of a cuts based MSA lamb program with at least two supply chains trialling MSA cuts based sheepmeat

LP 0 500

17,458 19,024

Budget 2015-16

2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 Grand Total

- Goat R - - - - 13 - - - 13

- Goat M 50 - - 205 - 50 - - 305

- Mutton R - - - - 29 - 8 22 59

- Mutton M 5 - - 140 - 200 16 117 478

- Lamb R - 34 52 - 150 - 33 72 342

- Lamb M 7,663 45 45 7,005 - 300 133 694 15,885

- Grassfed Cattle R - - - - - - - - -

- Grassfed Cattle M - - - - - - - - -

- Grainfed Cattle R - - - - - - - - -

- Grainfed Cattle M - - - - - - - - -

- Processor R - 233 52 - - - - - 285

- Processor M 288 45 45 445 - - - - 823



- Gov R - 267 105 - 192 - 41 95 699

- External M 25 - - 110 - - - - 135

Sum of R - 534 209 - 384 - 81 189 1,398

Sum of M 8,031 89 91 7,905 - 550 149 811 17,626

Sum of AOP 15/16 8,031 624 300 7,905 384 550 230 1,000 19,024

23

3. Improving productivity and profitability across the supply chain

3.1 Identify and deliver innovative opportunities to increase on-farm productivity and profitability through genetic and management interventions

For producers to remain competitive in the long term, innovative interventions from R&D that support production efficiency and greater profitability are critical. Key focus areas for 2015-16 include genetics, grazing systems improvements and management systems to improve eating quality. MLA’s investment in genetics will seek to improve the effective measurement and analytical platforms of BREEDPLAN and Sheep Genetics. Implementation of the Feedbase Investment Plan will continue with investments into new pasture species, soil borne root disease and phosphorous efficiency. Eating quality programs including MSA will focus on prediction of Bos indicus content, colour and intramuscular fat (IMF) and a further refinement of cut-offs for different grades. In sheep there will be continued investment in MSA cuts based analysis and the use of measurements such as IMF and carcase components to predict individual merit. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

Increased rate of genetic improvement in beef and lamb through higher rates of genetic gain principally focused on eating quality (lamb) and reproductive rate (beef) and higher numbers of recorded seedstock animals particularly in northern Australia (related to strategy 3.1.1)

Development and implementation of an MSA cuts based program for lamb in two supply chains (related to strategy 3.1.2)

Development of at least two technologies that can predict yield and elements of eating quality in beef and lamb supply chains (related to strategy 3.1.2)

Establishment of three R&D programs to improve reproductive performance, increase northern feedbase options and develop novel options for lifting growth rates as part of the new growNORTH initiative (subject to the Department of Agriculture approving the initiative) (related to strategy 3.1.3)

Quantify the economic impact (using producer case studies) of adopting recommended practices to improve breeder herd productivity (related to strategy 3.1.3)

Evaluated Sperm Chromatin Structure Assay and the Sperm Protamine Deficiency Assay as predictors of bull semen quality and female reproductive traits (related to strategy 3.1.1)

Developed and tested prototype systems for the on-property production of algae as a protein and energy supplement in northern Australia, including determining the optimal growth conditions for dry matter and crude protein accumulation and developing simple methods to harvest and store algae from these ponds (related to strategy 3.1.3)


2014-15 budget

2015-16 budget

1. Enhanced rates of animal and feedbase genetic improvement for the beef and sheep industries

1. Establishment of a single national database for genetic delivery of beef information from BREEDPLAN

LP 0 700 R MDC

2. Establishment of a national consortium for genetic and genomic R&D and adoption

LP 0 2,400

3. Development of the Sheep Genetics Management plan to implement outcomes from sheep genetics R&D

LP 3,789 2,500

4. Develop genetic and genomic evaluation tools for breeding enterprises

OIA 0 914

2. Continued investment in knowledge of management and measurement technologies that predict variation in eating quality performance

1. Identify measurement technologies that improve the credibility, accuracy and transparency of MSA grading and yield prediction in both beef and sheepmeat

LP 576 700

2. Continue to improve the prediction accuracy of lamb and beef through analytical models in beef and sheepmeat. Expand the knowledge of sensory responses to a range of genetic and management interventions including breed, carcase weight, finishing regime, stress and pathway to market

LP 1,988 1,753

3. Improved productivity in grazing and

1. Develop technologies and management programs to increase grazing performance, reproduction and

OIA 4,407 3,448

24


2014-15 budget

2015-16 budget

feedlot systems livestock survival in grassfed and feedlot systems

10,405 12,415

Budget 2015-16

3.1.1 3.1.2 3.1.3 Grand Total

- Goat R - - 45 45

- Goat M - - - -

- Mutton R 479 82 33 593

- Mutton M - - - -

- Lamb R 1,304 297 403 2,003

- Lamb M - - - -

- Grassfed Cattle R 975 610 690 2,274

- Grassfed Cattle M - - - -

- Grainfed Cattle R 204 238 555 996

- Grainfed Cattle M - - - -

- Processor R - - - -

- Processor M - - - -

- Livestock Export R - - - -

- Livestock Export M - - - -

- Gov R 2,961 1,226 1,724 5,911

- External M 593 - - 593

Sum of R 5,921 2,453 3,448 11,822

Sum of M 593 - - 593

Sum of AOP 15/16 6,514 2,453 3,448 12,415

25

3. Improving productivity and profitability across the supply chain

3.2 Identify information platforms and technologies that drive productivity and innovation throughout supply chains

Current export market opportunities offer the strongest drivers for demand driven farm-gate pricing. Given increasing global competitiveness, a whole-of-chain response is required to ensure the industry improves productivity and retains a competitive advantage. The key drivers and opportunities for improving demand-based farm-gate pricing, processing efficiency and market responsiveness are accurate and timely supply chain information and related decision making tools; maximising yield; improving eating quality performance; optimising product mix; addressing labour availability and OH&S issues; and implementing broader business efficiencies and innovation capabilities. In 2015-16, MLA will continue to focus on delivering large-scale transformational supply chain efficiency initiatives with a specific focus on automation and supply chain information. This program will be complemented by value chain capability building programs outlined in objective 5.2. MLA will also continue to collaborate with meat processors and the Australian Meat Processor Corporation (AMPC), to assist in the development of a portfolio of core AMPC-managed activities aimed at improving processing productivity. MLA and AMPC will also work closely together on the commercialisation and adoption of R&D outcomes to ensure benefits to producers and processors are realised. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

Develop and demonstrate in a supply chain a high volume sensing system to increase capacity and productivity and provide accurate supply chain data on carcase quality which offer options that can directly benefit producers (related to strategy 3.2.1)

Livestock Data Link (LDL) is demonstrated as adding value to both producers and processors through enhanced information flow and decision making abilities (related to strategy 3.2.2)

A whole-of-industry information exchange strategy endorsed by industry and implemented through key programs such LDL (related to strategy 3.2.2)

Realise net benefits of $1 million/annum from processing technologies developed under the MDC program and for which installation is completed in 2015-16 (related to strategies 3.2.1 and 3.2.3)

Total aggregated net benefit of MDC-funded technologies installed in 2015-16 and previous years reaches $10 million/annum (related to strategy 3.2.3)

Five MDC-funded supply chain efficiency commercial innovations have achieved at least 80 per cent of their annual adoption strategy targets, including associated cost benefit analyses (related to strategy 3.2.3)

Updated BeefSpecs tool includes prediction of eating quality attributes (carcase yield, MSA marble score, MSA ossification and MSA Index) and capability to assess the costs and benefits of changing livestock management for improved compliance (related to strategy 3.2.4)


2014-15 budget

2015-16 budget

1. Develop and prove technologies that improve carcase information

1. Develop and prove objective carcase measurement technologies that predict a range of carcase attributes including eating quality and lean meat yield

VCI 880 R MDC

880 R MDC

2. Facilitate improved information flows within value chains

1. Develop a whole-of-industry information exchange strategy including implementation of LDL

VCI 950 R MDC

1,300 R MDC

3. Develop new technologies to improve value chain productivity and efficiency

1. Develop and implement transformational automation technologies that increase processing efficiency and maximise carcase utilisation

VCI MDC MDC

4. Implement new practices and technologies to

1. Evaluate, develop and implement strategies to increase labour efficiency and cost of production

OIA 298 100

26


2014-15 budget

2015-16 budget

increase labour efficiency and compliance with market specifications

2. Develop precision management tools to improve market compliance

OIA 614 1,000


1. AMPC-funded and managed initiatives which are aligned to the strategic direction outlined on this page

AMPC 4,530 3,549

7,272 6,829

Budget 2015-16

3.2.1 3.2.2 3.2.4 3.2.9 Grand Total

- Goat R - - - - -

- Goat M - - - - -

- Mutton R 23 41 3 - 67

- Mutton M - - - - -

- Lamb R 70 88 32 - 189

- Lamb M - - - - -

- Grassfed Cattle R 113 521 515 - 1,149

- Grassfed Cattle M - - - - -

- Grainfed Cattle R 14 - - - 14


- Processor R 220 - - 1,775 220




- Gov R 440 650 550 1,774 1,640


Sum of R 880 1,300 1,100 - 3,280

Sum of M - - - - -

Sum of AOP 15/16 880 1,300 1,100 3,549 6,829

27

4. Industry sustainability and integrity

4.1 Sustainable supply chain resource management

The Australian red meat industry is an important custodian of vital natural resources and the ongoing success and reputation of the industry will depend on the way in which these natural resources are managed. In 2015-16 on-farm research will focus on refinement and localisation of existing knowledge to enhance our natural resources; new techniques for controlling major weed species; continued funding to the Invasive Animals CRC for commercial testing and roll-out of new controls for feral pigs, rabbits and wild dogs; trialling and refining tools to demonstrate and improve environmental stewardship; and strategies to enhance the environmental management of feedlots. Climate change will have major and complex economic, productivity and environmental impacts on the red meat industry. The integrated nature of these challenges means a strategic and multi-faceted response strategy must be adopted across the entire supply chain. Major investments include continuing projects funded jointly with the Australian Government to reduce greenhouse gas emissions and assist producers to adapt to increasingly variable climates. Off-farm research will continue to focus on energy and water use efficiency and developing more efficient waste water treatment processes as well as exploring opportunities for value adding to waste. A new initiative will explore the value proposition for producers and processors to engage in environmental activities that link together the value chain stakeholders, to increase productivity and profitability, while improving the industry’s environmental footprint. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

Cost effective weed management options for producers including parkinsonia biocontrol agents (looper caterpillar) classified as "established" in >30 target zones across northern Australia (Queensland, NT and WA) and a parkinsonia bioherbicide approval for registration under review to the Australian Pesticides and Veterinary Medicines Authority (APVMA) (related to strategy 4.1.1)

10,000 ha of silverleaf nightshade infected areas will be under best practice management during the 2015-2016 control season, including 150 producer demonstration/trial sites (related to strategy 4.1.1)

Preliminary host specificity testing of Jatropha leaf-miner to control bellyache bush completed and assessment completed of Nigrospora fungus for biocontrol of giant rat’s tail grass (related to strategy 4.1.1)

New tools for managing feral pigs, including submission of an APVMA registration package for a new pig toxin based on sodium nitrite and release of PIGOUT® Econobait pending registration approval (related to strategy 4.1.1)

New strain of rabbit calcivirus released across Australia pending APVMA registration approval (related to strategy 4.1.1)

New management options for producers to deal with hotter and more variable climates at a whole farm level through: completion of NRM spatial hub assessment for potential of utilising remote sensing of land condition data to improve biomass, productivity, pasture growth models and grazing decision tools; evidence base underpinning recommendations for use of wet season spelling to recover poor condition grazing land developed and communicated; identified the long-term impacts of different grazing strategies on vertebrate faunal biodiversity (wildlife abundance and diversity); and completion of the Wambiana grazing trial analysis and deliver products designed with producer input to assist grazing land management decisions (related to strategy 4.1.1)

Developed strategies to abate N-based greenhouse gas emissions in feedlots, potentially allowing the industry to develop abatement methodologies that are approved under the Emissions Reduction Fund (related to strategy 4.1.1)

Completed benchmarking of the phosphorus (P)-efficiency of a number of key pasture legume and grass species to identify those which have 30 per cent better P-use efficiency. This will include the development and delivery to industry of lower P fertiliser management guidelines, strategies for targeted fertiliser use and objective information concerning the P-fertility requirements of emerging, novel and alternative pasture legumes (related to strategy 4.1.1)

First results from the Pasture Variety Trial Network released to industry with results from over 100 varieties of six key pasture species evaluated in five environments (related to strategy 4.1.1)

Improved strategies and tools developed allowing for selection of sub-clover varieties which have resistance to fungal root diseases (related to strategy 4.1.1)

Completed the 15-year breeding program for a psyllid resistant variety of leucaena with the application for Plant Breeders Rights for the selected line/s successfully completed (related to strategy 4.1.1)

28

Technologies/processes that, in combination, demonstrate >10% reduction in electricity usage by meat processors defined and/or validated (related to strategy 4.1.2)

New technologies or processes capable of reducing the fossil fuel consumption (LPG/natural gas/coal etc) for meat processing plants by 5% are defined and/or validated (related to strategy 4.1.2)

New technologies or processes capable of reducing abattoir town water consumption are demonstrated and/or validated (related to strategy 4.1.2)

High rate anaerobic pond technology adopted with ex-post cost-benefit analysis completed (related to strategy 4.1.2)

Ex-ante cost-benefit analysis on conversion of waste to value-add products completed (related to strategy 4.1.2)

Develop strategy that identifies the value propositions for producers through the adoption of environmental value chain opportunities (related to strategy 4.1.2)

Strategy Key initiatives

Business unit

2014-15 budget

2015-16 budget

1. Support sustainable on-farm resource productivity

1. Develop improved management systems to enhance natural resources and reduce beyond-farm impacts from production systems and feedlots

OIA 1,436 3,761

2. Respond to climate variability through the development of resilient farming systems from mitigation and adaptation strategies

OIA 3,248 2,500

3. Develop cultivars and/or agronomic practices to improve persistence and/or quality of forage

OIA 3,492 2,940

4. Accelerate discovery and delivery of new plant breeding methods and cultivars to improve feedbase productivity, quality and persistence

OIA 1,328 1,130

2. Develop and implement through chain environment strategy

1. Improve efficiency of energy and water use and management of, and value adding to, waste along the value chain

VCI MDC MDC

2. Identify and quantify the value propositions for producers through the adoption of environmental value chain opportunities

VCI MDC 150 R MDC


1. AMPC-funded and managed initiatives which are

aligned to the strategic direction outlined on this

page

AMPC 930 3,115

10,434 13,596

29

Budget 2015-16

4.1.1 4.1.2 4.1.9 Grand Total

- Goat R - - - -

- Goat M - - - -

- Mutton R 97 1 - 99

- Mutton M - - - -

- Lamb R 1,876 25 - 1,901

- Lamb M - - - -

- Grassfed Cattle R 1,713 25 - 1,738


- Grainfed Cattle R 579 23 - 602


- Processor R - - 1,558 -




- Gov R 4,265 75 1,557 4,340

- External M 1,801 - - 1,801

Sum of R 8,530 150 - 8,680

Sum of M 1,801 - - 1,801

Sum of AOP 15/16 10,331 150 3,115 13,596

30


4.2 Animal welfare, biosecurity and animal well-being without reducing productivity levels

Community expectations around animal welfare standards for livestock continue to increase in Australia and overseas. In this objective, R&D investment will remain focussed on improving the welfare of livestock on-farm; seek to mitigate risks for potential market access to be compromised from breeches in animal welfare; address consumer concerns with evidenced based science; and enable industry to proactively respond to emerging issues. Key R&D investments will include seeking pain relief options for invasive husbandry practices and addressing heat load issues in feedlots. This key objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Livestock producers and industry will have baseline data to address the increasing consumer and community scrutiny of animal well-being credentials (related to strategy 4.2.1)

Livestock producers will have improved tools and techniques to manage animals in feedlots for improved health and welfare

The livestock industry will have improved processes to detect and respond to new and exotic diseases and biosecurity threats (related to strategy 4.2.2)

Livestock producers will have improved processes and tools to manage and reduce the impact of endemic disease on productivity and market access (related to strategy 4.2.2)

Established a new program of sheep animal health RD&E projects based on the priority endemic diseases identified in the B.AHE.0010 endemic disease survey and impact assessment project (related to strategy 4.2.2)

Completed a risk assessment of bluetongue transmission in Southern Australia by identification of endemic Culicoides spp host feeding preferences and their competence to transmit bluetongue virus (related to strategy 4.2.2)

Identified the vector/s of theileriosis and assessed the potential for passive transfer of the organism, for example on contaminated needles used for injection (related to strategy 4.2.2)

Developed a quantitative, real-time PCR (qPCR) diagnostic test for theileriosis in multiplex format which is more sensitive and provides faster and more cost-effective results than conventional PCR (related to strategy 4.2.2)

Completed efficacy trials using the “Barbervax” vaccine for barbers pole worm in goats, enabling a claim to be submitted to the Australian Pesticides and Veterinary Medicines Authority (APVMA) for Australian goats and Barbervax (MDC project) (related to strategy 4.2.2)

Assessed the production and financial benefits to feedlot operators from the adoption of the principles of "acclimation" under Australian feedlot conditions


unit 2014-15 budget

2015-16 budget

1. Manage and improve livestock welfare to meet community expectations

1. Improve animal welfare on-farm OIA 1,474 2,139

2. Improve the management options for key feedlot welfare issues

OIA 1,236 966

2. Support industry to improve animal health and biosecurity

1. Deliver improved diagnostic methods, enhanced understanding and/or improved control measures for external threats

OIA 500 300

2. Improve biosecurity measures that will minimise the treat/risk of endemic, emerging and exotic diseases to production and trade

OIA 2,095 538

3. Investigate and improve the management of key feedlot animal health problems

OIA 639 465

4. Invest in priority endemic diseases to reduce the cost to industry

OIA 2,451 3,433

8,395 7,841

31

Budget 2015-16

4.2.1 4.2.2 Grand Total

- Goat R - 29 29

- Goat M - - -

- Mutton R 32 185 217

- Mutton M - - -

- Lamb R 614 1,102 1,716

- Lamb M - - -

- Grassfed Cattle R 424 595 1,019

- Grassfed Cattle M - - -

- Grainfed Cattle R 483 226 709

- Grainfed Cattle M - - -

- Processor R - - -

- Processor M - - -

- Livestock Export R - - -

- Livestock Export M - - -

- Gov R 1,552 2,138 3,690

- External M - 460 460

Sum of R 3,105 4,276 7,381

Sum of M - 460 460

Sum of AOP 15/16 3,105 4,736 7,841

32


4.3 Support industry’s effective engagement with the community

Interest in the ethics of food production is gaining momentum both within Australia and overseas, particularly around animal welfare and environmental sustainability. The Australian public is generally supportive and has a high level of trust in the beef and lamb industry and particularly in Australian livestock producers. However, increased media and social media focus on animal welfare and the environmental impact of beef and lamb production threatens confidence in the red meat and livestock industry. To reinforce the existing community trust that the industry is an ethical and responsible custodian of livestock, land and resources, the community engagement program will support industry to authentically communicate the integrity of livestock production practices throughout the supply chain and the commitment of the industry to improvements based on scientific evidence. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

Percentage of consumers stating they are reducing red meat consumption due to perceived animal welfare or environment reasons remains below 7 per cent (related to strategy 4.3.2)

Drive increased engagement with the community engagement program through the Target 100 social platforms by 20 per cent from the 2014-15 baseline (related to strategy 4.3.1)

Promote beef and lamb teacher guides and drive an increase in their use as tracked by teacher resource downloads from Target 100 by 20 per cent from the 2014-15 baseline (related to strategy 4.3.1)

Assist industry in responding to community reputation issues as measured by peak council feedback (related to strategy 4.3.1)


2014-15 budget

2015-16 budget

1. Support the industry to maintain the community’s trust and confidence in the integrity and ethics of the Australian red meat industry by building knowledge and providing experience

1. Build knowledge in the community by partnering with relevant events to engage with thought leaders and the wider public in the food and sustainability space

CSE 227 170

2. Develop and promote targeted resources for primary, secondary and tertiary education facilities that deliver balanced messaging that is valued by teachers and utilised by students

CSE 217 203

3. Continue to utilise a central platform for communicating the industry’s sustainability and integrity, including animal welfare and environment to the community, customers and thought leaders

CSE 1,092 857

4. Work with industry to ensure an appropriate response to issues that could affect the industry’s reputation with the community, including developing industry processes, utilising industry advocates and social media

CSE 276 300

2. Equip and empower producers and their representatives to build our industry’s reputation through facts and engagement

1. Prepare research-based print and online materials and develop platforms to equip the industry to promote and respond to key environmental and animal welfare issues based on research and data

CSE 261 249

2. Proactively identify emerging community concerns that have the potential to impact industry through research, media and social media monitoring and key relationships. Use consumer research to actively track community sentiment

CSE 94 300

2,167 2,079

33

Budget 2015-16


- Goat R - - -

- Goat M - - -

- Mutton R - 2 2

- Mutton M 43 7 50

- Lamb R - 18 18

- Lamb M 375 86 461

- Grassfed Cattle R - 18 18

- Grassfed Cattle M 734 241 975


- Grainfed Cattle M 232 66 298

- Processor R 18 7 25

- Processor M 96 21 117



- Gov R 25 64 89

- External M - - -

Sum of R 51 128 179

Sum of M 1,479 421 1,900

Sum of AOP 15/16 1,530 549 2,079

34

5. Industry leadership, innovation adoption and capability

5.1 Platforms for supporting skill development and innovation adoption by producers

MLA invests in innovative research and development on behalf of livestock producers to ensure the industry remains competitive, profitable and sustainable. To support adoption of our R&D investment, MLA delivers the outputs of R&D programs through various different educational platforms, tools and services that enable levy payers to build their skills and capacity to enhance their decision making and overall business management. In 2015-16, MLA will continue to deliver targeted and timely packages of information, workshops and on-line tools in partnership with public and private sector delivery organisations. This key objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

On average, 50 per cent of engaged producers in the majority market programs (More Beef from Pastures. Making More From Sheep, FutureBeef and the Pastoral Profit program) will apply at least one new practice to improve their business performance (related to strategy 5.1.1)

Ten additional Producer Demonstration Sites (PDS’) to be implemented (across sheepmeat and grassfed beef programs) (related to strategy 5.1.2)

A pilot for a new adoption program will be completed that will underpin MLA’s future investments into producer adoption for the next five years

BusinessEDGE delivery will be enhanced in the north and a new program will be implemented for southern producers and also for those within the pastoral zone (related to strategy 5.1.1)

A new monitoring, evaluation and reporting framework will be implemented to ensure effective and transparent measurement of overall on-farm RD&A program impact for the red meat and livestock industry against the Meat Industry Strategic Plan 4, the Sheep Industry Strategic Plan and the Beef Industry Strategic Plan (related to strategy 5.1.3)

At least 300 producers will be actively involved in the Producer Research Sites program as part of the Feedbase Investment Plan (related to strategy 5.1.2)

The Parasite Control module within the Going into Goats (GiG) manual will be reviewed and updated content developed to provide Australian goat producers with current best practice advice to minimise the impacts of parasites on enterprise profitability and sustainability (related to strategy 5.1.1)

Developed a ‘management package’ for the successful integration of goats into sheep and/or cattle enterprises. The management package will focus on the benefits of "co-grazing" with economic analyses demonstrating the benefits of diversifying into goats (related to strategy 5.1.1)

Completed the pilot phase for a new feedlot extension model that utilises face-to-face communication to open dialogue with feedlots, and a range of different media, including mailouts, emails and a Facebook page as mechanisms for making information available and maintaining contact with interested feedlots (related to strategy 5.1.1)


unit 2014-15 budget

2015-16 budget

1. Facilitate the adoption of MLA R&D through tools and innovative learning programs

1. Deliver best practice integrated farming systems programs to support skill development and practice change – sheep

LP 1,821 1,524

2. Develop adoption platforms including educational tools and e-extension tools that enables maximum producer access to R&D outputs – sheep

LP 276 278

3. Deliver best practice integrated farming systems programs to support skill development and practice change – beef

OIA 1,165 865

4. Develop adoption platforms including educational tools and e-extension tools that enables maximum producer access to R&D outputs – beef

OIA 740 642

35


2014-15 budget

2015-16 budget

2. Partner with producers to support the development and adaptation of R&D and accelerate adoption

1. Establish partnerships with producer groups and networks to support facilitated learning through demonstration sites – sheep

LP 911 623

2. Establish partnerships with producer groups and networks to support facilitated learning through demonstration sites – beef

OIA 558

478

3. Use producer participatory R&D (Producer Research Sites) to maximise the rate and effectiveness and evaluation of new technologies

OIA 1,654 1,845

3. Continuously measure and monitor the performance and overall impact of RD&E levy investment

1. Develop effective measurement tools and conduct robust program evaluation and market research to determine industry RD&E needs and the impact of RD&E investment – sheep

LP 438 430

2. Develop effective measurement tools and conduct robust program evaluation and market research to determine industry RD&E needs and the impact of RD&E investment – beef

OIA 530 320

8,093 7,005

Budget 2015-16

5.1.1 5.1.2 5.1.3 Grand Total

- Goat R - 199 - 199

- Goat M - - - -

- Mutton R 102 65 32 198

- Mutton M - - - -

- Lamb R 649 562 183 1,394

- Lamb M - - - -

- Grassfed Cattle R 754 363 155 1,272


- Grainfed Cattle R - 242 5 247






- Gov R 1,505 1,430 375 3,310

- External M 300 84 - 384

Sum of R 3,009 2,861 750 6,620

Sum of M 300 84 - 384

Sum of AOP 15/16 3,310 2,945 750 7,005

36


5.2 Build industry value chain innovation capability

For the red meat industry to be sustainable in the future, a culture of innovation at all levels is critical. This will only occur if supply chains, organisations and the people within them have the necessary capabilities to grow and sustain innovation. In 2015-16, MLA will, via the MLA Donor Company, focus on delivering the Collaborative Innovation Strategies program (CISp) program to specifically address the need for integrated and long-term innovation capabilities, both at the enterprise level and throughout the supply chain. MLA will also continue to collaborate with the Department of Agriculture and Food Western Australia on a number of major supply chain programs in both beef and sheepmeat sectors as part of its Royalties for Regions program. It is anticipated that the northern beef supply chain program will be further developed beyond Western Australia via collaboration with the proposed growNORTH initiative and via the MDC. MLA, in collaboration with producers, meat processors, R&D providers, universities, state departments and the Australian Meat Processor Corporation, will seek to address targeted capability gaps such as enhancing science and technical skills within processing enterprises; supporting the development and adoption of new knowledge and technology innovations; increasing general innovation skills within enterprises/supply chains; and ensuring long-term R&D capability is available in required disciplines within the R&D provider community. This key objective aims to deliver the following outcomes; the strategy which relates to each is also denoted:

The Intercollegiate Meat Judging (ICMJ) program is successfully delivered with positive feedback received from participating companies and students documented (related to strategy 5.2.1)

The CISp program is demonstrating significant benefit to processors and producers as evidenced through a stakeholder engagement survey (related to strategy 5.2.2)

The ‘young value chain innovators program’ is designed and delivered and attracts at least 15 participants and is supported by industry and university programs (related to strategy 5.2.1)


unit 2014-15 budget

2015-16 budget

1. Attract and build individual value chain innovation capability

1. ICMJ program VCI 126 119

2. Young value chain innovators program VCI 30 15 R MDC

2. Work with enterprises and value chains to build capability to implement innovation strategies

1. Deliver the Collaborative Innovation Strategies program (CISp)

VCI MDC MDC

2. Develop and deliver targeted value chain capability programs

VCI 200 R MDC

200 R MDC

3. Support the development of essential science, research, technical and extension capabilities

1. Build professional capability and scientific knowledge of RD&E providers in the on-farm discipline

OIA 946 500


1. AMPC-funded and managed initiatives that are aligned to the strategic direction outlined on this page

AMPC 3,968 6,025

5,270 6,859

37

Budget 2015-16

5.2.1 5.2.2 5.2.3 5.2.9 Grand Total

- Goat R - - 2 - 2

- Goat M - - - - -

- Mutton R 3 10 12 - 24

- Mutton M - - - - -

- Lamb R 15 40 84 - 139

- Lamb M - - - - -

- Grassfed Cattle R 18 40 80 - 138

- Grassfed Cattle M - - - - -

- Grainfed Cattle R 4 11 73 - 87


- Processor R 28 - - 3,013 28




- Gov R 67 100 250 3,012 417


Sum of R 134 200 500 6,025 834

Sum of M - - - - -

Sum of AOP 15/16 134 200 500 6,025 6,859

38


5.3 Industry leadership and issues research

One of MLA’s roles is to invest in the development of industry capability and capacity. The future success of the industry will be underpinned by the ability of its leaders and MLA’s investment seeks to increase the skills and experience of industry participants through a range of industry development and scholarship opportunities. The investment will also develop a platform for industry leadership participants to network and seek opportunities to promote the industry. The success of the industry also relies upon the provision of high quality research in areas identified in conjunction with peak councils and government. This research is then able to inform industry in its policy development. This key objective will deliver the following outcomes; the strategy which relates to each is also denoted:

Three people to be supported through industry leadership programs in 2015-16 and actively engaged in industry activities (related to strategy 5.3.1)

20 previous industry leadership program participants to be actively engaged in the alumni program, with at least five participating in events and five media trained (related to strategy 5.3.1)

Three projects completed and used by peak industry councils to progress priority policy issues on behalf of the red meat industry (related to strategy 5.3.2)


2014-15 budget

2015-16 budget

1. Equip and empower producers to build the industry’s reputation through skills development

1. Support industry leadership programs such as Australian Rural Leadership Program, Nuffield scholarships and Horizon Scholarships

CSE 0 250

2. Develop a network for industry participants in industry leadership programs to encourage and continue advocacy within the industry and to the broader community, including through workshops, governance and media training

CSE 56 252

2. Work closely with peak councils and government and seek opportunities with like-minded organisations to identify priority industry issues and commission research to support these issues

1. Support policy research and analysis on priority policy issues identified by peak councils and government and where appropriate work with other RDCs and relevant organisations

CSE 300 400

356 902

39

Budget 2015-16


- Goat R - - -

- Goat M - - -

- Mutton R 4 7 11

- Mutton M - - -

- Lamb R 43 52 95

- Lamb M 60 - 60

- Grassfed Cattle R 88 119 207

- Grassfed Cattle M 84 - 84


- Grainfed Cattle M 36 - 36

- Processor R - - -

- Processor M - - -



- Gov R 161 200 361

- External M - - -

Sum of R 322 400 722

Sum of M 180 - 180

Sum of AOP 15/16 502 400 902

40

6. Stakeholder engagement and communication

6.1 Stakeholder engagement and communication

As the industry service company, MLA receives significant funds derived from livestock transaction levies and government contributions. MLA is accountable to a range of stakeholders and must be diligent and transparent in its engagement with its stakeholder groups, ensure levy payers have adequate influence over the investment of their levy and ensure stakeholders are aware of the value of the levy investment in R&D and marketing. Effective and efficient consultation mechanisms with industry are essential to ensure robust strategic insight into MLA’s corporate plan and annual operating plans. The company also has a range of corporate reporting requirements under MLA’s Deed of Agreement with the Australian Government and the Corporations Act. Reporting activities include an annual general meeting, annual report, corporate plan and annual operating plan. This key objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Increase membership to 51,000 members (currently 49,500) (related to strategy 6.1.2)

Producer feedback via a survey conducted in August with 65 per cent of feedback being positive

All reporting requirements required under corporations law and MLA’s Statutory Funding Agreement with the Australian Government are met (related to strategy 6.1.1)

Consultation model established and implemented by October 2015 (related to strategy 6.1.2)

10 per cent increase in usage of the website from 2014-15 baseline (related to strategy 6.1.3)

Five per cent increase in open rates of Friday Feedback from 2014-15 baseline (related to strategy 6.1.3)

Increase member satisfaction with Feedback magazine from 71 per cent to over 80 per cent (related to strategy 6.1.3)

Annual call for sponsorships implemented (related to strategy 6.1.3)


2014-15 budget

2015-16 budget

1. Deliver best practice corporate reporting

1. Develop corporate publications and deliver an annual general meeting that communicate opportunities for members and meet MLA governance requirements

CSE 647 367

2. Develop opportunities to actively engage with stakeholders and improve services to members

1. Ensure appropriate consultation mechanisms exist with all stakeholders to provide strategic insights to MLA and ensure MLA program plans focus on industry priorities and are implemented effectively

CSE 783 2,324

2. Support the development of a national consultation model based on regional committees that provides levy payers with the opportunity to provide direct input into the investment of their levy in MLA programs

OIA 0 800

3. Enhance MLA’s ability to report to levy payers by growing MLA’s membership base and improving data collection systems

CSE 503 313

3. Ensure stakeholders are aware of the activities and opportunities created by the investment of the levy in R&D and marketing

1. Produce MLA’s member magazine Feedback, deliver dynamic digital content and generate effective coverage through rural media to deliver valuable, relevant information and opportunities to support producers

CSE 2,035 2,010

2. Deliver a strategic program of MLA events and sponsor targeted industry events/activities to deliver MLA information and tools to producers across Australia

CSE 1,187 1,000

5,155 6,814

41

Budget 2015-16

6.1.1 6.1.2 6.1.3 Grand Total

- Goat R 1 1 12 14

- Goat M 1 1 2 4

- Mutton R - 14 60 74

- Mutton M 11 10 13 34

- Lamb R - 452 478 930

- Lamb M 122 744 347 1,212

- Grassfed Cattle R - 515 408 923

- Grassfed Cattle M 217 697 407 1,320

- Grainfed Cattle R 2 3 144 149

- Grainfed Cattle M 10 17 37 64





- Gov R 3 985 1,103 2,090

- External M - - - -

Sum of R 6 1,969 2,205 4,180

Sum of M 361 1,468 805 2,634

Sum of AOP 15/16 367 3,437 3,010 6,814

42

Corporate services

7.1 Corporate services

Encompassing the board, executive, finance, legal, human resources, information technology and other MLA-funded initiatives, the corporate services business unit provides support services, risk management, governance, budget and planning and reporting functions to MLA management and stakeholders as well as ensuring compliance with statutory and other corporate obligations. This key objective aims to deliver the following outcomes which, unless otherwise indicated, are related to all the strategies in the table below:

Clean audit report received (related to strategy 7.1.2)

Internal audit program delivered to the satisfaction of the MLA Audit and Risk Committee

Operation within the framework of the Deed of Agreement and statutory obligations (related to strategy 7.1.5)

Implement information technology three-year business plan (related to strategy 7.1.4)

Implement people and values business plan (related to strategy 7.1.3)

Implement processes and systems business plan

Strategy Key initiatives

1. Board and executive 1. The board and executive oversee and determine policies consistent with the company’s strategic plan and exercise direction and governance over resources and the way in which the strategies are implemented

2. Finance 1. Provide accurate, timely and meaningful information to management and stakeholders, manage financial risks, provide support for the budget and planning process and ensure internal controls are in place while effectively supporting operations

3. Human resources and administration

1. Provide services throughout the employment lifecycle to realise the full potential of MLA’s human resources to deliver value to the industry

4. Information technology and library services

1. Provide infrastructure, applications and applications support to facilitate the pursuit and realisation of organisational strategic objectives

5. Legal and registry 1. Provide legal advice and support to management. Monitor compliance with statutory and other regulations applicable to MLA’s business and interaction with its stakeholders. Manage the member registry

6. Undistributed costs 1. Cover costs that relate to the company as a whole, but which are not distributed to the key programs. They include insurance, repairs and maintenance and depreciation costs

7. Performance evaluation and benchmarking

1. Measure the effectiveness of MLA’s programs and the efficiency of services provided. Evaluations to be conducted on at least three programs (costs are allocated against programs evaluated)

8. Commercial 1. Provide contract services support to facilitate the negotiation, preparation, administration and execution of contracts in accordance with MLA’s contract approval policy

43

Budget 2015-16

7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8 Grand Total

- Goat R 5 3 4 8 1 3 - - 23

- Goat M 3 1 2 4 1 2 - - 13

- Mutton R 19 8 12 26 5 13 2 - 85

- Mutton M 19 8 12 27 5 13 2 - 86

- Lamb R 124 53 76 172 35 83 12 3 558

- Lamb M 306 132 191 426 86 205 29 8 1,383

- Grassfed Cattle R 162 70 100 225 46 108 16 4 731

- Grassfed Cattle M 657 283 401 1,285 186 440 63 19 3,334

- Grainfed Cattle R 39 17 24 54 11 26 4 1 176

- Grainfed Cattle M 82 35 50 114 23 55 8 2 369

- Processor R - - - - - - - - -

- Processor M - - - - - - - - -



- Gov R 348 151 216 485 98 233 34 8 1,571

- External M 509 220 314 710 144 341 49 13 2,300

Sum of R 695 301 431 969 196 466 68 16 3,142

Sum of M 1,576 679 970 2,566 445 1,056 151 42 7,485

Sum of AOP 15/16 2,271 980 1,401 3,535 641 1,522 219 58 10,627

44

AUS-MEAT

AUS-MEAT

AUS-MEAT is an independent company limited by guarantee and jointly owned by the Australian Meat Processor Corporation (AMPC) and MLA. The board is made up of two members from each of the owner organisations and an independent chairman. The funding reflected below is only that injected by MLA, with AMPC making its equal contribution directly to AUS-MEAT. AUS-MEAT operations are split into two areas: the standards division (AUS-MEAT) and the services division (AUS-QUAL). Industry levies are only provided to fund the standards division. All costs incurred by the services division are met from revenues and from previous industry transition capitalisation. The services division is budgeted to be self-funding, as per the original business plan. Budget 2015-16

7.2.1 Grand Total

- Goat R - -

- Goat M 2 2

- Mutton R - -

- Mutton M 13 13

- Lamb R - -

- Lamb M 208 208

- Grassfed Cattle R - -

- Grassfed Cattle M 450 450

- Grainfed Cattle R - -

- Grainfed Cattle M 56 56

- Processor R - -

- Processor M - -

- Livestock Export R - -

- Livestock Export M - -

- Gov R - -

- External M - -

Sum of R - -

Sum of M 729 729

Sum of AOP 15/16 729 729

45

MLA Donor Company

MLA Donor Company

A fully-owned MLA subsidiary, MLA Donor Company Limited provides a vehicle for attracting voluntary contributions from individual enterprises that share a mutual interest with MLA to co-invest in innovation initiatives that will deliver benefit to the Australian red meat industry. Since inception in 1999, the MDC (R&D partnership) program has engaged enterprises from all parts of the industry supply chain including processors, value-adders, breed societies, large pastoral companies and technology providers. A specific component of MDC activity relates to the Plant Initiated Partnership (PIP) projects which are co-funded with AMPC and processors. In addition, MDC has also formed international alliances which have assisted in accelerating Australia’s access to valuable intellectual property at a much lower cost than would otherwise have been possible. The current value of projects in progress within the R&D partnership portfolio is $180 million with an anticipated total expenditure in 2015-16 of approximately $32 million.

MDC initiatives are clearly integrated with the overall objectives of MLA’s five-year Corporate Plan. In broad terms, the objectives of MDC initiatives include: to significantly increase the level of enterprise investment in innovation in the Australian red meat industry; enhance the outcomes of commercially focused innovation thereby ensuring quantifiable benefit to individual enterprises and ultimately to the industry overall; accelerate the commercialisation of R&D adding to the quantum of innovations available to the industry; and assist the Australian red meat industry to develop an innovation culture and capability. As MDC partnership projects are directly related to delivering against MLA’s overall strategic plan, key program deliverables have been included in the relevant milestone sections of this Annual Operating Plan. A key outcome of the MDC programs will be to ensure dissemination and adoption of project outcomes to the broader industry. In 2015-16, quantified measurement of this will be undertaken.

Strategy and MLA AOP page Key initiatives

1. Conduct scientific research to ensure food safety systems are at the leading edge of knowledge and practice (1.1)

1. Assess and maintain the safety and integrity of product in the marketplace

2. Develop and implement new techniques and systems for delivering safe and wholesome product

3. Develop risk-based post mortem inspection systems for animal health surveillance, and assessment of product safety and suitability

2. Develop value chain innovation insights (2.1)

1. Deliver innovation knowledge services of emerging trends and opportunities that support design led research to develop future growth and inform future investment decisions.

3. Develop novel value adding options through packaging and product innovation that enhances demand for red meat in global markets (2.2 and 2.3)

1. Develop innovative new products, packaging and processes for red meat that support growth in high value markets and market segments

2. Build red meat industry capability to adopt new products, packaging and value adding concepts that lead to growth in high value markets and market segments

3. Develop innovative technologies and processes to add value to red meat co-products

4. Enhance rates of animal and feedbase genetic improvement for the beef and sheep industries (3.1)

1. Establish a single national database for genetic delivery of beef information from BREEDPLAN - Beef Information Nucleus (BIN)

5. Supply chain innovation including facilitating improved information flows within value chains (3.2)

1. Develop and prove objective carcase measurement technologies that predict a range of carcase attributes including eating quality and lean meat yield

2. Develop a whole-of-industry information exchange strategy including implementation of Livestock Data Link

3. Develop and implement transformational automation technologies that increase processing efficiency and maximise carcase utilisation

6. Northern Beef Value Chain Program

1. Develop and deliver Northern Beef productivity improvements 2. Leverage investment and collaborate with DAFWA via the Royalties for

Regions Northern Beef Futures 3. Partner with the growNORTH collaborative research and development

program to deliver research that will lower investment barriers and enable significant development in the north

4. Develop and support a Northern Beef Industry Supply Chain group

46

Strategy and MLA AOP page Key initiatives

7. Develop and implement a ‘through chain’ environment strategy (4.1)

1. Improve efficiency of energy and water use and management of, and value adding to, waste along the value chain.

2. Identify and quantify the value propositions for producers through the adoption of environmental value chain opportunities

8. Support industry to improve animal health and biosecurity (4.2)

1. Deliver improved diagnostic methods, enhanced understanding and/or improved control measures for external threats

2. Improve biosecurity measures that will minimise the treat/risk of endemic, emerging and exotic diseases to production and trade

3. Investigate and improve the management of key feedlot animal health problems

4. Invest in priority endemic diseases to reduce the cost to industry

9. Build industry value chain innovation capability (5.2)

1. Deliver the young value chain innovators program 2. Deliver the Collaborative Innovation Strategies program (CISp) 3. Develop and deliver targeted value chain capability programs 4. Build professional capability and scientific knowledge of on-farm RD&E

providers

Anticipated total investment $32,000

47

Appendix A – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian Government’s Science and Research Priorities

Australian Government Science and Research Priority/MLA AOP objective Budget $’000

Environmental Change 2,650

4.1 Sustainable supply chain resource management 2,650

Food 94,411

1.1 Develop and deliver industry systems that underpin product integrity 8,016

1.2 Support industry and government to maintain and liberalise world meat markets 1,249

2.1 Develop and deliver market and consumer insights for better decisions 5,458

2.2 Aggressive promotion of beef across global markets 4,027

2.3 Aggressive promotion of lamb across global markets 1,460

3.1 Identify and deliver innovative opportunities to increase on-farm productivity & profitability through genetic and management interventions 14,977

3.2 Identify information platforms and technologies that drive productivity and innovation throughout supply chains 20,753


4.2 Animal welfare, biosecurity and animal well-being without reducing productivity levels 9,410

4.3 Support industry’s effective engagement with the community 179

5.1 Platforms for supporting skill development and innovation adoption by producers 6,628

5.2 Build industry value chain innovation capability 10,429

5.3 Industry leadership and policy research 722

6.1 Stakeholder engagement and communication 4,196

Soil and Water 3,807



Transport 2,920

1.3 Maximise market options for producers and exporters in the livestock export market 2,920

Resources 3,862



Total MLA R&D budget (including MLA Donor Company) 107,649

None of MLA’s R&D budget is allocated to the following Australian Government Science and Research Priorities: Cybersecurity, Energy, Advanced Manufacturing or Health.

48

Appendix B – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian Government’s Rural R&D Priorities

Australian Government Rural R&D Priority/MLA AOP objective Budget $’000

Biosecurity 6,068



Climate Variability and Climate Change 2,500


Natural Resource Management 3,616


Productivity and Adding Value 36,540

1.3 Maximise market options for producers and exporters in the livestock export market 500


2.2 Aggressive promotion of beef across global markets 316

2.3 Aggressive promotion of lamb across global markets 95






Supply Chain and Markets 45,946






2.3 Aggressive promotion of lamb across global markets 1,366








Supporting the Rural Research and Development Priorities 12,979





6.1 Stakeholder engagement and communication 800


49

Appendix C – alignment of MLA’s AOP objectives and 2015-16 budget to the Australian Government’s Agricultural Competiveness White Paper Priorities

Australian Government Agricultural Competitiveness White Paper Priority/MLA AOP objective

Budget $’000

Adoption of Research and Development 28,370











Advanced Technology 66,756














Biosecurity 6,408



Soil, Water and Managing Natural Resources 6,116



50

Appendix D: Funding sources of strategic imperatives

Figure D1: Strategic imperative 1 – Trade and market access 2015-16 budget, by funding source (see pages 8-13)

Figure D2: Strategic imperative 2 – Increasing demand for red meat 2015-16 budget, by funding source (see pages 14-

22)

Figure D3: Strategic imperative 3 – Improving productivity across the supply chain 2015-16 budget, by funding source

(see pages 23-26)

51

Figure D4: Strategic imperative 4 – Industry sustainability and integrity 2015-16 budget, by funding source (see pages

27-33)

Figure D5: Strategic imperative 5 – Industry leadership, innovation, adoption and capability 2015-16 budget, by funding source (see pages 34-39)

Figure D6: Strategic imperative 6 – Industry engagement and communication 2015-16 budget, by funding source (see

pages 40-41)

In 2015-16, an additional $16 million is projected to be attracted in voluntary contributions, matched with Australian Government funding ($16 million) and invested via the MLA Donor Company (MDC) (see page 45). No producer levies are used in MDC projects.

Appendix E: MLA income and expenditure by funding source 2015-16

MLA Income and Expenditure by Funding Source 2015-16 Goat R Goat M Mutton R Mutton M Lamb R Lamb M Grassfed Cattle RGrassfed Cattle MGrainfed Cattle RGrainfed Cattle M Processor RProcessor MLivestock Export RLivestock Export MExternal M Government matching

Goat Goat Mutton Mutton Lamb Lamb Cattle-GrassCattle-GrassCattle-Grain Cattle-Grain Processor Processor LiveCorp LiveCorp External MLA

External MLA MLA Govt MLA

Total Donor Co Consolidated

Strategic Imperative R M R M R M R M R M R M R M R M R M R M M R R 2015-16

1.Maintaining & Improving Market Access

√ 1.1Develop and deliver industry systems that underpin product

integrity30 99 59 99 438 1,712 497 1,811 828 2,363 125 922 953 3,285 1,480 5,194 1,843 534 16 17 25 9,109 3,338 12,447

√ 1.2Support industry and government to maintain and liberalise

world meat markets- 2 2 84 17 752 19 836 33 898 5 140 38 1,038 57 1,876 568 1,834 - - 131 4,466 625 5,090

√ 1.3Maximise market options for producers and exporters in the

livestock export market25 34 100 440 125 488 225 928 315 2,808 - - 315 2,808 565 3,770 - - 895 1,505 - 6,735 1,460 8,195

2. Growing Demand

√ 2.1Develop and deliver market and consumer insights for better

decisions13 5 48 - 402 635 450 635 1,122 1,522 118 108 1,240 1,630 1,703 2,269 745 - - - 1,814 6,531 2,448 8,979

√ 2.2 Aggressive promotion of beef across global markets - - - - - - - - 558 27,918 164 3,719 722 31,637 722 31,637 340 2,591 - - 697 35,987 1,062 37,049

√ 2.3Aggressive promotion of sheep meat and goat meat across

global markets13 305 59 478 342 15,885 401 16,363 - - - - - - 414 16,668 285 823 - - 135 18,325 699 19,024

3. Increasing Productivity across the Supply Chain

√ 3.1

Identify and deliver innovative opportunities to increase on-farm

productivity & profitability through genetic and management

interventions

45 - 593 - 2,003 - 2,596 - 2,274 - 996 - 3,271 - 5,911 - - - - - 593 6,504 5,911 12,415

√ 3.2Identify information platforms and technologies that drive

capacity and innovation throughout supply chains. - - 67 - 189 - 257 - 1,149 - 14 - 1,163 - 1,420 - 1,995 - - - - 3,415 3,415 6,829

4. Support industry integrity and sustainability

√ 4.1 Sustainable supply chain resource management - - 99 - 1,901 - 2,000 - 1,738 - 602 - 2,340 - 4,340 - 1,558 - - - 1,801 7,699 5,897 13,596

√ 4.2Animal Welfare and animal well being without reducing

productivity levels29 - 217 - 1,716 - 1,934 - 1,019 - 709 - 1,728 - 3,690 - - - - - 460 4,151 3,690 7,841

√ 4.3 Support industry’s effective engagement with the community - - 2 50 18 461 20 511 18 975 27 298 45 1,273 65 1,784 25 117 - - - 1,990 89 2,079

5. Industry Leadership, Innovation Adoption and Capability

√ 5.1Platforms for supporting skill development and innovation

adoption by producers199 - 198 - 1,394 - 1,593 - 1,272 - 247 - 1,519 - 3,310 - - - - - 384 3,695 3,310 7,005

√ 5.2 Build industry value chain innovation capability 2 - 24 - 139 - 163 - 138 - 87 - 224 - 389 - 3,041 - - - - 3,430 3,430 6,859

√ 5.3 Industry Leadership & Policy Research - - 11 - 95 60 107 60 207 84 47 36 255 120 361 180 - - - - - 541 361 902

6. Stakeholder Engagement & Communication

√ 6.1 Stakeholder Engagement & Communication 14 4 74 34 930 1,212 1,004 1,246 923 1,320 149 64 1,072 1,384 2,090 2,634 - - - - - 4,724 2,090 6,814

√ 7.3.1 Ausmeat - - - 46 - 69 - 115 - 401 - 59 - 460 - 575 - - - - - 575 - 575

R & D Partnerships (MLA Donor Company) 16,000 16,000 32,000

Total Expenditure pre Corporate Services 368 448 1,552 1,230 9,711 21,274 11,263 22,504 11,596 38,289 3,288 5,346 14,884 43,635 26,516 66,587 10,398 5,898 911 1,522 6,041 117,874 16,000 53,825 187,698

√ 7.1 √Corporate Services 23 13 85 86 558 1,383 643 1,469 731 3,334 176 369 906 3,703 1,571 5,185 - - - - 2,300 9,056 1,571 10,627

√ 7.2.1 √Levy Collection Costs - 2 - 13 - 208 - 221 - 450 - 56 - 506 - 729 - - - - - 729 - 729

Total Expenditure 391 463 1,637 1,329 10,269 22,865 11,906 24,194 12,326 42,073 3,464 5,771 15,790 47,844 28,087 72,501 10,398 5,898 911 1,522 8,341 127,659 16,000 55,396 199,054

Income Available:

- Levies 345 217 1,153 1,303 8,344 20,421 9,496 21,724 9,817 39,053 2,625 5,390 12,441 44,442 22,283 66,384 88,667 88,667

- Govt - 55,396 55,396

- Processors 10,398 5,898 16,297 16,297

- Live Export 911 1,522 2,433 2,433

- R & D Partnerships (MLA Donor Company) - 16,000 16,000

- External 8,341 8,341 8,341

Total Income 345 217 1,153 1,303 8,344 20,421 9,496 21,724 9,817 39,053 2,625 5,390 12,441 44,442 22,283 66,384 10,398 5,898 911 1,522 8,341 115,738 16,000 55,396 187,133

Difference (to/(from) reserves) (46) (246) (484) (26) (1,925) (2,444) (2,409) (2,470) (2,510) (3,020) (839) (381) (3,349) (3,401) (5,804) (6,118) - - - - - (11,921) - - (11,921)

Opening Reserves 714 726 952 1,463 8,840 18,646 9,792 20,109 6,275 29,122 3,015 5,643 9,290 34,765 19,795 55,600

Closing Reserves 2015-2016 668 480 468 1,438 6,915 16,202 7,383 17,639 3,765 26,102 2,176 5,262 5,941 31,364 13,992 49,483

% of Revenue 194% 221% 41% 110% 83% 79% 78% 81% 38% 67% 83% 98% 48% 71% 63% 75%

Total Cattle Total Levy Funds Processor LiveCorpGoat Mutton Lamb Total Sheep Cattle-Grass Cattle-Grain

meat & livestock australia annual operating plan 2015-16 · 2016. 7. 13. · 4 introduction...

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